Digital Economy

Almost half of Europeans say security concerns are holding them back from some online activity, preventing people from reaping the full benefits of digital innovation. While Europe has a good record in addressing cybersecurity concerns, there is no room for complacency, as the number of attacks remains high.

As security threats multiply and evolve, there is a risk that consumers lose confidence in the privacy of their data, negatively affecting their ability to transact online. It is important that the regulation of cross-border data flows is not exploited for protectionist purposes while securing the trust of consumers and enabling businesses and society to innovate.

Exploiting the benefits of digital innovation in areas like artificial intelligence and smart cities requires more investment in digital infrastructure. Investments are hindered by declining revenues from telecoms services in Europe, while the data demands on infrastructure are growing rapidly. Moreover, due to the fragmented nature of spectrum policy in the EU, Europe has lost the lead in mobile broadband to other regions.

EU telecom rules and new legislation need to be reviewed to create an environment that is more conducive to investments in digital infrastructure. Aligning spectrum allocation policy with EU growth and jobs goals would boost the competitiveness of European companies relative to foreign giants. This would help to accelerate the investments necessary to seize digital opportunities.